R00 INTRODUCTION TO REFERENDUM GUIDELINES

R00 Guidelines for Referendum Campaign Organizers
July 2007
R00: INTRODUCTION TO REFERENDUM GUIDELINES
Introduction
This information package is provided to assist those individuals and organizations
who seek to promote a particular result in Ontario’s electoral system referendum
vote on October 10, 2007 in conjunction with the polling day for the general
election.
The Chief Electoral Officer has responsibility for the administration of the
referendum required by the Electoral System Referendum Act, 2007 (“ESRA,
2007”) to ensure the process is fair, transparent, and accessible for all Ontarians
who want to participate in the referendum debate.
The guidelines are intended to assist referendum campaign organizers and their
chief financial officers in meeting the registration and reporting requirements of
Ontario Regulation 211/07 made under ESRA, 2007.
In particular, the guidelines deal with registration, contribution, campaign
advertising, and reporting rules.
These guidelines are made under the authority of the Electoral System
Referendum Act, 2007.
Table of Contents
SECTION 1
The Electoral System Referendum Act, 2007 and the Ontario Regulation 211/07
SECTION 2
Guideline R01 Application for Registration as a Referendum Campaign
Organizer (“RCO”)
Guideline R02 Change in Registration Information
Guideline R03 Use of a Registered Referendum Campaign Organizer’s
(“RRCO”) Own Funds
Guideline R04 Rules on Contributions
Guideline R05 Referendum Advertising
Guideline R06 Referendum Period Advertising Report
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Guidelines for Referendum Campaign Organizers R00
July 2007
SECTION 3
Registration Form RCO-1 Referendum Campaign Organizer
Reporting Form RAR-1 Referendum Advertising Report
Appendix A Determination of Carrying on Business in Ontario
Requirement for Corporate Contributions
Disponible aussi en français
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R01 Guidelines for Referendum Campaign Organizers
July 2007
R01: REFERENDUM CAMPAIGN ORGANIZER –
APPLICATION FOR REGISRATION
.01 Every person or entity spending $500 or more on referendum advertising
to solicit votes in favour of a particular result, or to promote a particular
result, during the referendum period must register with the Chief Electoral
Officer. That registration will disclose the name, address and other
identifying information of the registrant. Where an entity has a governing
body then a copy of a resolution from that body authorizing the
referendum campaign organizer to incur referendum advertising expenses
must be included with the application.
There is an exception to the registration requirement where the
referendum campaign organizer is spending less than $500 to solicit votes
or promote a particular result.
The Chief Electoral Officer may refuse to register a referendum campaign
organizer where their name or nickname may cause confusion with the
name or nickname of a registered referendum campaign organizer
registered under the ESRA, 2007; a third party registered under the EFA
or a candidate, political party or political organization active anywhere in
Canada.
A political party or constituency association registered under the Election
Finances Act may not be registered as a referendum campaign organizer.
O. Reg. 211/07 reference 4
.02 A referendum campaign organizer who files an application for registration,
form RCO-1, with the Chief Electoral Officer:
• prior to September 10, 2007 is deemed to be registered effective
from September 10, 2007, providing the application is approved
• after September 10, 2007 is deemed to be registered the day the
application is received at the offices of the Chief Electoral Officer,
providing the application is approved. The form may be submitted
by fax or similar method of electronic transmittal
• an application for registration forwarded by registered mail to the
Chief Electoral Officer after September 10, 2007 is deemed to have
been filed on the day it is mailed, providing the application is
approved
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Guidelines for Referendum Campaign Organizers R01
July 2007
Appointment of a Chief Financial Officer (CFO)
.03 Every referendum campaign organizer must appoint a CFO before
applying to register with the Chief Electoral Officer. The following persons
are not eligible to be a CFO of a referendum campaign organizer:
• The CFO or auditor of a candidate, party, constituency association,
leadership contestant or third party registered under the EFA.
(Despite this requirement, a third party registered under the EFA
and a referendum campaign organizer registered under the ESRA,
2007 may have the same CFO where the referendum campaign
organizer and the third party are the same person or entity.)
• A returning officer, deputy returning officer or election clerk
O. Reg. 211/07 reference 5
.04 The Chief Electoral Officer provides the Referendum Campaign Organizer
Registration and Change Notice Form RCO-1 for organizers applying for
registration. It is important to submit complete information for all points on
the application. The RCO-1 application form is included in this information
package.
.05 It is the CFO's responsibility to ensure that the requirements of the
Electoral System Referendum Act, 2007 and Ontario Regulation 211/07
are met, including that:
• the necessary financial records of referendum advertising
contributions and referendum advertising expense are kept
• that monies received are placed in the appropriate depository on
record with the Chief Electoral Officer
• that contributions of goods or services are valued and reported as
both contributions and expenses
• that every referendum advertising expense incurred for a
referendum campaign organization is authorized
• the prescribed referendum advertising report is filed with the Chief
Electoral Officer
• that, where the referendum advertising expenses are $5,000 or
more, the report has been audited
O. Reg. 211/07 references 5, 6, 9
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R02 Guidelines for Referendum Campaign Organizers
July 2007
R02: CHANGE IN REGISTRATION INFORMATION
.01 When the registered referendum campaign organizer’s CFO or auditor
ceases for any reason to hold office, the registered referendum campaign
organizer shall immediately appoint another CFO or auditor and shall
immediately inform the Chief Electoral Officer in writing of the name,
address and telephone number(s) of the new CFO or auditor, by filing an
amended Referendum Campaign Organizer Registration and Change
Notice Form RCO-1.
O. Reg. 211/07 references 4(4), 6(5)
.02 Where there has been a change in CFO, the person accepting the
appointment should receive the following documents from the retiring
CFO:
• the Chief Electoral Officer's Guidelines for Chief Financial Officers
• all financial records of the particular referendum campaign
If these documents are not provided, the new CFO should write and
advise the Chief Electoral Officer accordingly.
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R03 Guidelines for Referendum Campaign Organizers
July 2007
R03: USE OF AN ORGANIZER’S OWN FUNDS
.01 When a registered referendum campaign organizer’s own monies are
used for that organizer’s referendum campaign advertising expenses
those monies must be recorded and reported in the referendum
advertising report.
O. Reg. 211/07 reference 14(4) (c)
.02 Once the referendum period has begun on September 10, 2007, a
referendum campaign organizer that spends $500 or more of their own
funds on referendum advertising expenses must register with the Chief
Electoral Officer.
O. Reg. 211/07 references 3(1), 3(2) (b)
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R04 Guidelines for Referendum Campaign Organizers
July 2007
R04: RULES ON CONTRIBUTIONS
General
.01 The Electoral System Referendum Act, 2007 and Ontario Regulation
211/07 contain a number of important requirements regarding acceptance
of contributions on behalf of a registered referendum campaign organizer.
The CFO of a registered campaign should become completely familiar
with these provisions. Particular note should be made of the recording
requirements for contributions in Guidelines R04.20 to R04.26 and the
contribution reporting period of July 10, 2007 to January 10, 2008.
O. Reg. 211/07 reference 9 (1)
Who May Contribute
.02 Contributions may be accepted on behalf of a registered referendum
campaign organizer only from the following individuals or organizations:
• a person who is normally resident in Ontario
• a corporation that is not a registered charity and that carries on
business in the Province of Ontario. Many corporations carry on
business through subsidiaries and affiliated companies. Provided
each carries on an active business in Ontario each corporation
qualifies as a contributor
• a trade union as defined by the Labour Relations Act or the Canada
Labour Code that holds bargaining rights for employees in the
Province of Ontario to whom those Acts apply, including central,
regional or district labour councils located in the Province of
Ontario.
There are notable exceptions to who may contribute. Care should be
taken not to accept contributions from:
• a corporation that is a registered charity
• charitable organizations
• corporations which do not qualify (Appendix A)
• Members of the House of Commons domiciled in Ontario but
representing an electoral district outside of the Province of Ontario.
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O. Reg. 211/07 reference 10 (1)
.03 Contributions may be made to a registered referendum campaign through
an unincorporated association or organization provided the unincorporated
association or organization meets certain requirements. Many small
businesses such as retail and repair shops are unincorporated.
Partnerships and joint ventures are also examples of unincorporated
associations or organizations. In order for the contribution to be
acceptable, the unincorporated association or organization must provide a
written list of the name and address of each particular person, corporation
or trade union that was the ultimate source of the contribution and the
amount contributed by each to the CFO of the referendum campaign.
O. Reg. 211/07 reference 11
For example, the Monday Afternoon Bridge Club, an unincorporated club,
wishes to contribute $1,500 to a registered campaign. This contribution
must be broken down into its particular sources and amounts. For
instance, $500 may have come from Mr. A, $500 from Mrs. B, $300 from
Mr. C and $200 from Ms. D who are some or all of the club's members.
The CFO of the registered campaign must have this information in writing
before accepting the contribution.
Another example would be a contribution from the partners of a
professional partnership such as a firm of chartered accountants, lawyers,
dentists etc. This contribution too must be broken down into its particular
sources and amounts as in the first example. The CFO again must have
the information in writing before accepting the contribution.
A further example of an unincorporated organization is a business, which
is organized as a partnership, and not as a limited company such as Bob
and Joe's Garage which is a partnership of Bob X and Joe Z. The CFO
must be very careful to determine that this is indeed an unincorporated
business. As with the first example, the CFO must have the information
regarding the partners and the amounts of their contributions in writing
before accepting the contribution.
Joe’s Garage may be a sole-proprietorship of Joe Z. The contribution
would be recorded as a contribution from the individual, Joe Z, carrying on
business (“COB”) as Joe’s Garage and not simply a contribution from
Joe’s Garage.
And lastly, income trusts, such as a Real Estate Investment Trust (REIT),
must provide a list of the members of the trust that participated in the
contribution and at what amount.
.04 A contribution may only be made in the contributor's own funds. Where a
contribution is made on behalf of a contributor by a trustee or a person
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R04 Guidelines for Referendum Campaign Organizers
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holding a power of attorney, the cheque must have the name of the
beneficiary, who is the real contributor, legibly printed thereon. Where the
printed cheque does not contain the beneficiary's name, for example,
"John Doe in Trust", the beneficiary's name must be legibly added, for
example, "John Doe in Trust for Mary Smith". Also, the cheque must be
drawn on an account in the name of the beneficiary and not the trustee.
Therefore, a cheque drawn on a lawyer's general trust account would not
meet this requirement of the Electoral System Referendum Act, 2007.
.05 Anonymous contributions, contributions from unidentifiable or anonymous
sources, contributions from sources other than those permitted under
Guideline RO4.02, cash contributions in excess of $25, and contributions
of funds not belonging to the contributor except as mentioned in Guideline
RO4.03 received by the referendum campaign’s CFO must not be used or
expended by the referendum campaign for referendum advertising
purposes.
O. Reg. 211/07 reference 10(2), 13(1)
Who May Accept Contributions
.06 The CFO or other authorized persons on record with the Chief Electoral
Officer may accept contributions for the registered referendum campaign.
Therefore, any contributions, which are collected by others, for example,
by means of a door-to-door canvass, must be turned over immediately to
the referendum campaign’s CFO or other persons on record with the Chief
Electoral Officer, along with a list of the names and addresses of the
contributors and the amounts of their individual contributions.
While the Electoral System Referendum Act, 2007 permits other
authorized persons on record to accept contributions, it is the CFO's
responsibility to ensure that contributions in excess of $25 are by way of a
cheque drawn on the contributor's own bank account, a money order
signed by the contributor or by way of a charge on the individual
contributor's credit card, and that contributions by unincorporated
associations or organizations are accompanied by a list of those persons
sharing in the contribution and the amount contributed by each.
O. Reg. 211/07 reference 4 (2), 5 (2)
.07 Where the registered referendum campaign organizer or CFO learns that
any contribution has been made or accepted in contravention of any
provisions of Ontario Regulation 211/07 such as, but not limited to:
• contributions from unidentifiable or anonymous sources
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Guidelines for Referendum Campaign Organizers R04
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• contributions from sources other than those permitted under
Guideline R04.02
• cash contributions in excess of $25
• contributions of funds not belonging to the contributor except as
mentioned in Guideline R04. 03.
Then the referendum campaign organizer must not use such a
contribution for the purposes of referendum advertising.
O. Reg. 211/07 references 10, 11, 12
Types of Contributions
.08 If a contribution to a registered referendum campaign consists of money
and if the amount of the contribution exceeds $25, it must be made in one
of the following ways:
• by cheque having the name of the contributor legibly printed
thereon, signed by the contributor and drawn on an account in the
contributor's name
• by money order signed by the contributor or
• in the case of monies contributed by an individual, by credit card
having the name of the individual imprinted or embossed thereon
• through a facilitating entity such as PayPal, provided the
transaction is effected using a credit card
Note: Financial institution debit cards are not an acceptable form of contribution.
O. Reg. 211/07 reference 12 (1)
.09 For purposes of recording a contribution for referendum advertising
purposes, only the net amount of the donation is treated as a
contribution. If any rebate is given, either in the form of money or of goods,
in connection with the political contribution, then the value of that rebate
must be subtracted from the amount of the donation in order to arrive at
the net amount of the contribution.
For example, if a contributor is offered a gift worth $25 for each $200
donation, a contribution for only $175 is to be recorded. In the case of a
fund-raising event, if the price of admission is $300 and includes a dinner
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R04 Guidelines for Referendum Campaign Organizers
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and complimentary liquor that costs $50, a contribution of only $250 is to
be recorded.
Should the contribution component of any charge exceed $25, the entire
amount must be paid for by cheque, money order or credit card.
O. Reg. 211/07 reference 12(1)
.10 Goods or services provided by a supplier to a registered referendum
campaign organizer are to be considered a contribution.
In every instance where goods or services have been provided for
referendum advertising purposes a referendum advertising expense in the
equivalent value is considered to have been incurred.
The value of goods or services for the referendum advertising purposes of
the Ontario Regulation 211/07 is deemed to be the lowest market price for
similar goods or services at the time of their provision.
For example, if a referendum campaign pays $150 for the printing of
handbills, but the lowest market price available to other customers is
$275, then the difference of $125 is deemed to be a contribution to the
referendum campaign by the printer.
O. Reg. 211/07 reference (1) (c)
.11 Voluntary labour is not considered to be a contribution to the registered
referendum campaign.
Any services performed voluntarily by an individual are not considered to
be a contribution to the registered referendum campaign provided the
individual does not receive from any source, pursuant to an arrangement
with the individual's employer, compensation in excess of that normally
received during the period this service is performed. Note that these must
be services actually performed by the individual.
O. Reg. 211/07 reference (1) (c)
Limits on Contributions
.12 There are no limits on the amount of contributions that can be made to a
registered referendum campaign organizer for the purposes of referendum
advertising. The referendum campaign period for acceptance of
contributions ends January 10, 2008.
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Guidelines for Referendum Campaign Organizers R04
July 2007
.13 While cash contributions are limited to $25 they are not anonymous, and
the source of any referendum advertising contributions should be recorded
for reporting purposes.
O. Reg. 211/07 references 12, 14
Depositing, Recording and Reporting of Contributions
.14 All monies accepted on behalf of a registered referendum campaign
organizer, including the campaign organizer’s own funds, to be used for
the purposes of referendum advertising must be deposited in the financial
institution on record with the Chief Electoral Officer. To facilitate audit
examination of the records, duplicate deposit slips should be prepared for
all financial institution deposits listing the names of the referendum
advertising contributors.
Cheques received from credit card institutions for credit card contributions
accepted will be supported by contributor details in accounts submitted to
the institution for payment.
O. Reg. 211/07 reference 12 (2)
.15 For the purposes of recording and reporting contributions accepted by:
• cash, cheque or money order are considered to have been
accepted at the time such contributions are deposited in the
financial institution account on record with the Chief Electoral
Officer
• credit card vouchers are considered to have been accepted on the
date the credit card voucher is deposited or submitted by the CFO
to the credit card issuer for payment
.16 All contributions accepted during a referendum campaign period on behalf
of a registered referendum campaign organizer for the purposes of
referendum advertising must be recorded at the time of deposit by the
registered referendum campaign organizer’s CFO as to that particular
purpose. In addition, where such contributions, including goods, services
or advertising, have a total aggregate value exceeding $100 from a single
source, the CFO must also report the name and address and classification
of the contributor and the amount and date of each contribution.
To adhere to the requirement to record contributions for referendum
advertising purposes the CFO must establish ledger accounts that
designate monies and donations in kind contributed for the purposes of
referendum advertising and those contributed for the general purposes of
the referendum campaign organizer.
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R04 Guidelines for Referendum Campaign Organizers
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O. Reg. 211/07 reference 14 (4)
.17 All referendum advertising contributions which have been recorded during
a referendum campaign period must be reported in the referendum
advertising report to be filed with the Chief Electoral Officer by the
registered referendum campaign organizer’s CFO no later than April 10,
2008.
O. Reg. 211/07 reference 14 (1)
Receipts for Contributions
.18 Contributions to registered referendum campaign organizers are not
eligible for a political tax credit receipt. CFO’s may wish to use an informal
receipt of their design to acknowledge contributions and to assist in the
recording task.
O. Reg. 211/07 reference 12(2)
Acceptance of Contributions
.19 If a cheque for a contribution is drawn on a joint personal bank account,
the contribution should be recorded only for the person who signed the
cheque. Where two people have signed a cheque drawn on a joint
personal bank account, the CFO should determine who made the
contribution and record the contribution accordingly.
Soliciting Contributions
.20 All literature and other communication used in connection with any
solicitation of referendum advertising contributions by or on behalf of a
registered referendum campaign must clearly identify the registered
referendum campaign organizer as being the recipient or beneficiary of
such contributions. Further, the solicitation must provide an opportunity for
the donor to determine that the contribution is to be used only for the
purpose of referendum advertising or that the contribution may be used for
the discretionary purposes of the RCO. Donors who designate that their
contribution only be used for referendum advertising purposes should also
be informed that such contributions not so used are subject to a prorated
refund from the RCO.
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Prohibited Transfers and Loans
.21 Transfers of funds or goods and services among registered referendum
campaign organizers are not permitted. Further, referendum campaign
organizers cannot accept loans and transfers of funds or goods and
services from political parties and constituency associations registered
under the Election Finances Act or loans and transfers of funds or goods
and services that result from contributions under the Election Finances Act
to a registered candidate.
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R05 Guidelines for Chief Financial Officers
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GUIDELINE R05: REFERENDUM ADVERTISING
General
.01 The Ontario Regulation 211/07 made under the Electoral System
Referendum Act, 2007 defines referendum advertising as advertising
during the referendum period in any broadcast, print, electronic or other
medium that promotes a particular result in the referendum. Any person or
entity spending $500 or more on referendum advertising must apply to
register immediately with the Chief Electoral Officer as a registered
referendum campaign organizer.
Parties and constituency associations registered under the Election
Finances Act are prohibited from registering as a referendum campaign
organizer. There are authorization and reporting requirements for any
referendum advertising that appears. In addition there is a blackout period
for such advertising on polling day and the day before polling day. Also,
there are restrictions on the rates that may be charged by broadcasting or
publishing facilities for such advertising.
O. Reg. 211/07 references 1, 3, 4, 14, 16, 17, 18
LIMITS ON TIME
.02 There is a blackout period imposed on the day before polling day and
polling day, i.e. October 9th and 10th, 2007. Referendum advertising must
end at midnight October 8, 2007.
No broadcaster or publisher shall allow a referendum advertisement to
appear during the blackout period.
The prohibition against the publication of a referendum advertisement
does not apply to:
• genuine news reporting
• the publication of referendum advertising, on polling day or the day
before polling day, in a newspaper that is published once a week or
less often and whose regular day of publication falls on that day
• a referendum advertisement on the Internet or in a similar
electronic medium, if posted before and not altered during the
blackout period
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• a referendum advertisement in the form of a poster or billboard, if
posted before and not altered during the blackout period
.03 However, this two day blackout period does not apply to:
• advertising of public meetings relating to the referendum
• announcing the location of referendum campaign organizer
headquarters
• advertising for volunteer referendum campaign workers
• announcing polling day services for electors
• any other matter respecting administrative functions of the
referendum campaign organizer
provided that such advertisements, announcements and other matters are
done in accordance with the guidelines of the Chief Electoral Officer.
The Chief Electoral Officer has determined, therefore, that while it is
permissible for such an advertisement or announcement to contain the
name of the referendum campaign organizer or to include the logo of the
referendum campaign organizer, a reference to the particular exempt
service or activity listed in subsection 17 (5) of the regulations of the
Electoral System Referendum Act, 2007 must constitute the
dominant feature of such advertisement or announcement. Further,
such advertisement or announcement must not contain any slogan, motto
or other wording promoting the particular position of the referendum
campaign organizer or opposing another referendum campaign
organizer’s position, such as “Vote for MMP” (or FPTP), “On polling day
make a choice to keep the system we have, “On polling day make a
choice to change the system”, or “Pick MMP (or FPTP) on October 10th,
etc.
Note: The two day blackout period does not apply to fund-raising advertising
provided the content of the advertisement conforms to this guideline.
O. Reg. 211/07 reference 17
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R05 Guidelines for Chief Financial Officers
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REFERENDUM ACTIVITIES OF POLITICAL ENTITIES REGISTERED UNDER
THE EFA
.04 Political parties and constituency associations registered under the
Election Finances Act are not permitted to register as a referendum
campaign organizer so as to organize a campaign or advertise to promote
or entreat on behalf of a particular referendum result. They are not
permitted to explicitly promote or entreat on behalf of a particular
referendum result. Advertising that contains slogans, mottos, or wording
such as “Vote for MMP (or FPTP)”, “On polling day make the choice to
keep the system we have, “On polling day make the choice to change the
system”, or “Pick our party and MMP (or FPTP) on October 10th” is
prohibited.
However, political parties and constituency associations registered under
the Election Finances Act are permitted to make fair public comment by
discussing and advertising their policies and positions on the referendum
and the referendum legislation. It is fair public comment for
advertisements of their election platforms/policies to say, for example, “We
support MMP (or FPTP)”, “If elected; we will introduce an electoral reform
bill even if the 60 per cent threshold is not met”, “We will repeal the
referendum law”, or, “We will respect whatever Ontarians decide”. Such
advertising, which is no different from advertising in respect of other
election issues, is governed by the requirements and limits found in the
Election Finances Act.
Although permitted to register separately as a referendum campaign
organizer under the ESRA, 2007 and O.Reg. 211/07, a person registered
as a candidate under the EFA must ensure that there is evidence of a
clear separation of financial, advertising, and other activities between their
campaign as a candidate and their campaign as a referendum campaign
organizer.
Whether or not they are registered as a referendum campaign organizer,
persons who are candidates registered under the EFA:
1. cannot solicit election campaign contributions to be used to
promote or entreat on behalf of a particular referendum result (such
solicitation would be in contravention of the Election Finances Act)
nor can they use their election campaign funds to promote or
entreat on behalf of a particular referendum result (such use would
be in contravention of the Electoral System Referendum Act, 2007
and O. Reg. 211/07). As with parties and constituency associations,
a candidate is permitted to discuss or publish his/her personal or
party position on the referendum and the referendum legislation;
and,
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Guidelines for Chief Financial Officers R05
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2. must ensure that any referendum advertising they pay for (or
consent to) does not promote or oppose a registered party or the
election of a registered candidate. Such advertising would
constitute political advertising and would be governed by the
requirements and limits found in the Election Finances Act.
O. Reg. 211/07 references 4, 6
LIMITS ON RATES TO BE CHARGED
.05 During the referendum period, no person or corporation shall charge a
referendum campaign organizer, or any person, corporation or trade union
acting with the referendum campaign organizer’s consent, a rate for
making referendum advertising available in any broadcast, print, electronic
or other medium that exceeds the lowest rate the person or corporation
charges anyone else for the same amount of equivalent advertising space
or time during the referendum period.
O. Reg. 211/07 reference 18
.06 It is recognized that, in certain media, advertising rates may depend upon
the volume of time or space purchased over the year. For the purposes of
the Ontario Regulation 211/07 the lowest rate shall refer to the lowest rate
available to any other customer purchasing advertising equivalent to the
total volume of referendum advertising carried on by or on behalf of a
registered referendum campaign organizer.
OTHER MATTERS
.07 Where a broadcasting facility may provide time without charge to
registered referendum campaign organizers in accordance with the
provisions of and regulations and guidelines under the Broadcasting Act
(Canada), the provision of such free time to referendum campaign
organizers shall not be considered to be a contribution or a referendum
advertising expense for the purposes of the Ontario Regulation 211/07.
.08 Referendum advertising constitutes a contribution for the purposes of this
Act if,
• it promotes a particular result and appears during the referendum
period
• it is provided or arranged for by a person, corporation or trade
union with the knowledge and consent of the registered referendum
campaign organizer and/ or the CFO of same
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A referendum advertising contribution described above that is made
during a referendum period constitutes a referendum advertising expense
of the referendum campaign organizer’s position so promoted.
O. Reg. 211/7 reference 1
.09 A publisher may publish any genuine news stories including interviews,
commentaries, or other works prepared for and published by any
newspaper, magazine or other periodical publication without charge to any
referendum campaign organizer. The publication of such material is not
considered to be referendum advertising under the Ontario Regulation
211/07.
A broadcasting facility may similarly broadcast genuine news stories
subject, however, to the provisions of and regulations and guidelines
under the Broadcasting Act (Canada).
O. Reg. 211/07 reference 17 (4)
.10 Pre-referendum advertising literature purchased by a referendum
campaign organizer for use after September 10, 2007 must be accounted
for as a referendum advertising expense of the registered referendum
campaign organizer.
.11 Promotion by a registered referendum campaign organizer by such means
as menus, place mats, or shopping bags must be accounted for. Where
the referendum advertising is simply added to an existing product used by
a third party, such as menus or place mats by a restaurant or shopping
bags by a super market, then the expense is the incremental cost of that
advertising. Costs would include direct identifiable costs such as artwork
and special dyes. However, when the product itself is distributed by the
registered referendum campaign organizer, the entire cost of the product
is a referendum advertising expense. For example, where the registered
referendum campaign organizer distributes place mats or shopping bags
to the public, the cost must be comparable to that charged to similar
customers. All such advertising must bear proper authorization as referred
to in Guideline R05.15.
AUTHORIZATION OF POLITICAL ADVERTISING
.12 During the referendum period of September 10, 2007 to October 10, 2007,
all referendum advertising expenses incurred by a registered referendum
campaign organizer must be approved by that organizer’s CFO.
O. Reg. 211/07 reference 9 (2)
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.13 All pre-referendum and referendum period advertising including
advertising in any broadcast, print, electronic or other medium, e.g. printed
advertising, handbills, placards, posters, lawn signs and billboards and
broadcast, telecast or Internet advertisements, shall bear or make
reference to the name of the registered referendum campaign organizer,
person, corporation or trade union authorizing the pre-referendum or
referendum period advertising.
No specific language is required for the authorization but it must be
apparent what person or entity has caused the advertisement to appear
and any other person or entity that has sponsored or paid for it.
O. Reg. 211/07 reference 16
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R06: CAMPAIGN PERIOD ADVERTSING REPORT
General
.01 The CFO of every registered referendum campaign must file a referendum
advertising report by April 10, 2008.
Appointment of Auditor
.02 Where referendum advertising expenses are $5,000 or more the
registered referendum campaign organizer must without delay appoint an
auditor licensed under the Public Accounting Act, 2004 or a firm whose
partners resident in Ontario are licensed under that Act. Notice of this
appointment along with the required auditor identity information must
forthwith be provided to the Chief Electoral Officer.
The following persons are not eligible to be an auditor for the referendum
campaign organizer:
• the referendum campaign organizer’s CFO
• a person who signed the application for registration of the
referendum campaign organization
• a candidate as defined in the Election Finances Act
• a returning officer, deputy returning officer or election clerk
• the chief financial officer or auditor of a registered candidate, party,
constituency association, leadership contestant or third party as
defined in the Election Finances Act . (Exception: the auditor of a
third party may be the auditor of a referendum campaign organizer
where the referendum campaign organizer and the third party are
the same person or entity)
O. Reg. 211/07 reference 6
The Registered Referendum Campaign Organizer’s Referendum
Advertising Report Form RAR-1
.03 The Chief Electoral Officer requires that all referendum advertising reports
be filed in the form prescribed or approved by the Chief Electoral Officer.
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Many CFOs maintain computerized records of the information required by
the statutory disclosure provisions and generate the statements from
computers.
CFOs who wish to use computer-generated information for the
referendum advertising report must have the format approved by the Chief
Electoral Officer prior to filing computer-generated statements.
Computer-generated statements must contain all the required information
in a format substantially similar to the Chief Electoral Officer's forms.
Filing Date
.04 The registered referendum campaign organizer’s referendum advertising
report is due April 10, 2008.
.05 The Chief Electoral Officer will accept as on time, a referendum campaign
period advertising report postmarked or courier receipted on or before
April 10, 2008.
.06 The Chief Electoral Officer will not accept as filed financial statements
which have any of the following deficiencies:
• report statements without the signed certifications of the CFO and
RCO/official
• report statements without the signed auditor's report where
referendum advertising expenses are $5,000 or more
• report statements without the required completed schedules
Completing the Referendum Campaign Organizer’s Referendum
Advertising Report – General
.07 The registered referendum campaign organizer’s referendum advertising
report gathers all the information required for disclosure under the
Electoral System Referendum Act, 2007 and also in a form that can be
reported on by auditors when required. The form is set out as follows:
• address information of the referendum campaign organizer and the
CFO
• certifications signed by the referendum campaign organizer and the
CFO responsible for filing the referendum advertising report
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• income statements on referendum advertising contributions,
including goods and services contributions and the organizer’s own
funds
• expense statements on referendum advertising
• various supporting and disclosure schedules including the over
$100 contributor’s list
• the schedule of time and place of referendum advertising
.08 The supporting schedules are an integral part of the referendum
advertising report. It is important that each schedule agrees with the
primary statement.
.09 The form should be completed by typing or printing clearly. The
referendum advertising report as filed will be photocopied for display at
Elections Ontario. In addition, the report and the names and amounts of
contributor’s over $100 will be available on the Elections Ontario website.
You may wish to notify such contributors of this disclosure requirement.
Certification Of Chief Financial Officer
.10 This section must be completed by the CFO who is responsible for filing
the referendum advertising report. The Chief Electoral Officer's staff needs
to be able to contact CFOs in a timely manner during the review process.
Therefore, please be sure to complete all contact information fields.
Report Of Referendum Campaign Period Income And Expenses
.11 This guideline clarifies and defines what items should go into each
account reported in the report of referendum advertising.
This statement should include all income received for referendum
advertising purposes and expenses incurred for referendum advertising.
INCOME
Contributions – Contributions accepted in the period from July 10, 2007
to January 10, 2008 for the purposes of referendum advertising should be
reported in this account. This includes monies contributed as well as
contributions of goods or services.
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Registered Referendum Campaign Organizer’s Own Funds – The
amount paid out of the RRCO’s own funds for referendum advertising
expenses.
Designation of Contributions and Organizer’s Own Funds for
Referendum Advertising Purposes – There is a requirement to establish
ledger accounts to designate, at the time of deposit, monies and
donations in kind contributed for the purposes of referendum advertising
and those contributed for the general purposes of the referendum
campaign organizer.
Schedule 2 – Contributions
PART I – CONTRIBUTIONS
.12 Contributions for referendum advertising purposes must be broken down
into separate totals:
• from a single source totalling more than $100
• from a single source totalling $100 or less.
• within each of those general totals you must provide a further break
down by class of contributor, i.e. individual, corporation or trade
union
O. Reg. 211/07 reference 14
Donated or discounted goods or services for referendum advertising
purposes are considered to be a contribution except those provided by
voluntary unpaid labour.
In every instance where goods or services have been provided for
referendum advertising purposes an expense in the equivalent value is
considered to have been incurred.
O Reg. 211/07 references 1, 5 (2) (e)
Total contributions should be carried to the statement of campaign period
income and expenses.
PART II – LIST OF CONTRIBUTORS TOTALLING MORE THAN $100
.13 Part II illustrates the format for listing the name and address and
classification of contributors who have made contributions for referendum
advertising purposes totaling more than $100. You must record the
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amount and date of each contribution making up this reported figure. If
insufficient space is provided, attach a list using this format. You may wish
to notify such contributors of this disclosure requirement.
If the contributions during the period of July 10, 2007 to October 10, 2007
for referendum advertising purposes cannot be identified then the CFO
must report the name, address, and classification of all contributors at an
amount greater than $100 to the referendum campaign organizer during
that period.
O. Reg. 211/07 reference 14 (4)
Referendum Advertising Expenses
DEFINITIONS AND CATEGORIES
Referendum advertising means advertising in any broadcast, print, electronic or
other medium that promotes a particular referendum result and appears during
the referendum period of September 10, 2007 to October 10, 2007.
Referendum advertising expense means an expense incurred in relation to the
production of a referendum advertisement or the transmission of that
advertisement to the public.
A referendum advertising expense is reported whether it is paid before, during or
after the referendum period. If an amount is paid for both referendum advertising
and other advertising, i.e. pre-referendum advertising, then the expense must be
pro-rated for the appropriate periods.
Only those prepaid referendum advertising expenses that are consumed during
the referendum period constitute a referendum advertising expense.
Include all payments for the design, printing, distribution, etc. of sign, brochure or
other referendum promotional items such as buttons.
In addition to reporting all referendum advertising expenses the report will
disclose in the prescribed schedule the time and place of broadcast or
publications of such advertisements.
O. Reg. 211/07 reference 4(2)
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Guidelines for Referendum Campaign Organizers R06
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Auditor's Report
.14 The referendum campaign organizer’s auditor, appointed where
referendum advertising expenses are $5,000 or more, will complete the
standard auditor's report included in the RAR-1 report unless the auditor
wishes to submit a qualified report or a denial of opinion.
Please note that there is no audit subsidy available from the Chief
Electoral Officer for the cost of the auditor’s services.
Auditor’s accepting an engagement under the Electoral System
Referendum Act, 2007 should contact their governing body for any
interpretations available on their practice obligations under the ESRA,
2007.
O. Reg. 211/07 reference 15
Disposition Of Surplus
.15 Monies contributed to a registered referendum campaign organizer for
referendum advertising purposes during the referendum period of
September 10 to October 10, 2007 are funded monies that should not be
used for other purposes of the registered referendum campaign organizer.
Accordingly, where there is a surplus of referendum advertising
contributions monies remaining after paying referendum advertising period
expenses, then that surplus must be paid out to any recorded contributors
in proportion to the amount of their original contribution to total referendum
advertising contributions. A share that is less than $25 does not need to
be returned.
However, any referendum advertising contribution monies remaining after
the required surplus disbursement must be paid to the Chief Electoral
Officer.
The disposition of surplus referendum advertising contributions must be
completed prior to filing the Registered Referendum Advertising Report
RAR-1.
O. Reg. 211/07 reference 13
RAR-1 Filing Checklist
.16 To ensure completeness, follow the checklist below and confirm that:
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• the financial statements are audited well in advance of the filing
deadline
• the name and address and contact information boxes are complete
• the financial statements have been signed by the referendum
campaign organizer and the CFO
• all required schedules have been completed and agree with the
referendum advertising report as appropriate
• where required the auditor's report has been completed and signed
• all contributions over $25 have been accepted by cheque, money
order or credit card
• contributions of goods and services for referendum advertising
purposes have been recorded both as a contribution and as an
expense
• contributions for referendum advertising purposes have been
accepted only from persons resident in Ontario, from corporations
that are not charities and carrying on business in Ontario and from
trade unions with bargaining rights in Ontario
• all contributions have been made from the contributor's own funds
• contributions made through an unincorporated association including
a partnership, but excepting a trade union, have been recorded for
each individual member of the association or partnership sharing in
the contribution and in the amount each contributed
• all vouchers for referendum advertising expenses of an amount
more than $50 should be retained until permission is received from
the Chief Electoral Officer for their destruction. The Chief Electoral
Officer may request that vouchers be submitted for detailed
examination.
ADDITIONAL INFORMATION
OFFENCES
.17 A person or entity that knowingly:
• contravenes any provision of Ontario Regulation 211/07
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• makes a false statement in documents filed with the Chief Electoral
Officer
• gives false information to the CFO or other persons authorized to
accept contributions on behalf of the referendum campaign
organizer
is guilty of an offence and liable, on conviction, to a fine of not more than
$5,000 in the case of an individual, and not more than $50,000 in the case
of a corporation, trade union or other entity.
Electoral System Referendum Act, 2007 reference 16
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Appendix A Guidelines for Referendum Campaign Organizers
July 2007
APPENDIX A: CORPORATE CONTRIBUTIONS –
CARRYING ON BUSINESS IN THE PROVINCE OF
ONTARIO
.01 A corporation, in order to be eligible to make a contribution for referendum
advertising purposes to a registered referendum campaign organizer
under Ontario Regulation 211/07, must carry on business in the Province
of Ontario and must not be a registered charity. In determining this matter,
the Chief Electoral Officer will consider any of the following criteria as
acceptable evidence that a corporation is carrying on business in the
Province of Ontario for contribution purposes:
• the corporation maintains an office or establishment in the Province
of Ontario for the purpose of carrying on its business activities to
which one or more employees report to work
• the corporation enters into contracts in the Province of Ontario on a
regular basis either through its officers, employees or agents
having general authority to act on its behalf
• the corporation is an extra-provincial corporation licensed to carry
on business in the Province of Ontario pursuant to Part IX of the
Corporations Act (Ontario)
• the corporation is taxable in the Province of Ontario pursuant to the
Corporations Tax Act (Ontario).
Where a corporation wishing to make a referendum advertising
contribution under Ontario Regulation 211/07 is unable to meet at least
one of the criteria set out above, the onus shall be on that corporation to
satisfy the Chief Electoral Officer that the corporation is carrying on
business in the Province of Ontario.
.02 Corporations which otherwise meet the criteria outlined above, but which
have been established for charitable purposes, are, in general, prohibited
by statute or by common law from making referendum advertising
contributions. Only corporations that are not registered charities within the
meaning of paragraph 248(1) of the Income Tax Act (Canada) may make
referendum advertising contributions. CFOs should make reasonable
efforts to satisfy themselves that the contributor corporation is entitled
under its governing laws to make a referendum advertising contribution.
O. Reg. reference 10 (1)
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